GBP to EUR Forecast - December 2025
If you're planning to send money between Britain and Europe, whether it's GBP to EUR (for example, to Spain) or the other way around, here’s what you need to know about current trends and what might happen in the coming weeks.
The British pound (GBP) has been losing ground against the euro (EUR) in recent weeks.
The exchange rate dropped to around 1.140361 GBP/EUR, a seven-week low, meaning 1 British pound now buys fewer euros than it did earlier this year.
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What is likely to happen to GBP/EUR in December 2025
The pound remains under pressure and risks stay tilted toward slight further weakness over the next month. A stronger rebound is possible, but only if the UK Budget restores fiscal credibility.
GBP to EUR: Where It Stands
GBP to EUR is currently trading near the lower end of its recent range, with the pound under pressure from political uncertainty, weakening UK economic data and expectations of Bank of England rate cuts. The euro is not especially strong on its own, but it is benefitting from relative stability compared with the UK.
What’s Driving GBP to EUR?
UK fiscal uncertainty. Markets dislike the UK government's recent tax policy U turns. This has made investors nervous and pushed the pound lower.
Expectations of BoE rate cuts. Several analysts expect faster and deeper cuts in the UK next year. Lower expected rates usually weaken a currency.
ECB tone is steadier. While Eurozone growth is weak, the European Central Bank sounds more balanced and less likely to cut aggressively in the near term. This supports the euro relative to the pound.
UK data is soft. Weak UK growth, political indecision and worries about fiscal discipline are all weighing on sterling.
Elevated volatility. Traders are actively positioning through EUR GBP, which increases day to day swings.
What Do the Charts Say?
EUR GBP is holding above important support around 0.8739 to 0.8753 and more recently 0.8815. This supports a bias toward euro strength. Resistance areas are seen around 0.8865 and then 0.8800 to 0.8850, though the higher 0.8865 zone looks more important.
For GBP to EUR, these translate to support near 1.13 and 1.1270. If the pound weakens further, GBP to EUR could slip toward 1.12. A recovery would need a move back above roughly 1.14.
What to Watch in December 2025
The key events likely to move the pair soon.
UK Budget on November 26. This is the biggest driver. A credible plan could help the pound rebound. A messy one could send it lower.
UK inflation. Higher than expected CPI could temporarily support the pound because it may slow BoE rate cuts.
Eurozone inflation. Softer figures would slightly weigh on the euro, but direction is mainly GBP driven.
Market sentiment. Risk off periods tend to keep pressure on the pound.
Risks Ahead
Possible surprises that could change the outlook.
A disappointing UK Budget could spark another leg lower in GBP to EUR.
Faster than expected BoE rate cuts would also weaken the pound.
Sharp risk off market conditions could strengthen the euro further.
Conversely, if the UK Budget restores confidence, there is room for a relief rebound because the pound is currently seen as undervalued.
What This Means If You’re Sending GBP to EUR Abroad
Right now the pound is on the weaker side, meaning you get fewer euros for your pounds. If UK news stays negative, rates could slip a bit further. If the UK Budget improves confidence, rates could rise and give you slightly more euros. If you need to transfer soon, be prepared for volatility and consider watching for small rebounds.
Live GBP/EUR exchange rates
Converting GBP to EUR
If you are planning to send GBP to the EU, you need to pick the right money transfer company to get the most EUR on the other end.
Depending on your needs, it's best to use one of the following companies in December:
History of the GBP to EUR pair
The UK and the European Union have had a long historical relationship. The UK joined the European Economic Community in 1973 which was a key part of the formation of the European Union (EU) in 1993.
However, the UK was among a group of countries like Poland, Romania, and Sweden that failed to sign to the single currency. Their idea was that they needed their central banks to manage the movements of their local currency.
Historically, the euro has been criticized for restricting the independence of sovereign countries. For example, it is common for the ECB to hike interest rates when big countries like Germany and France are doing well while smaller ones are struggling.
The euro has outperformed the British pound over the years because of its role as the second-biggest economy in the world. The EU has a GDP of over $16 trillion, making it smaller than the US $23 trillion.
In addition, the GBP/USD has dropped because of the impacts of Brexit, which introduced some trade barriers between the UK and the EU. The GBP to EUR exchange rate has crashed by ~39% from its peak in 1999.
| Date | 1 Pound Sterling in EUR |
|---|---|
| Dec 03, 2025 | 1.144147 EUR |
| Dec 04, 2025 | 1.144196 EUR |
| Dec 05, 2025 | 1.145511 EUR |
| Dec 06, 2025 | 1.145898 EUR |
| Dec 07, 2025 | 1.144710 EUR |
| Dec 08, 2025 | 1.144843 EUR |
| Dec 09, 2025 | 1.144098 EUR |
| Dec 10, 2025 | 1.144193 EUR |
| Dec 11, 2025 | 1.140590 EUR |
| Dec 12, 2025 | 1.140361 EUR |
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